Are you planning on buying a new car? Do you wonder how to get car insurance for your vehicle? It is a state requirement for car owners to carry minimum insurance coverage, regardless of the vehicle type. Additional car insurance requirements apply if you lease or finance a new vehicle. You may still want or need coverage even if you don’t own a vehicle. Here is a guide to help you get car insurance as per your requirements.
Tips to Keep in Mind Before Getting Car Insurance
If you wonder how to get car insurance, here are some tips that can help you with the best deal for your needs:
- Ensure you know the types of car insurance you must have and those that are optional.
- Make sure you have your vehicle and personal information with you.
- Contact at least three companies for the most appropriate car insurance quotes.
- Don’t forget to compare the premiums, limits, and coverage amounts.
- Invest in a new policy of car insurance and make a decision. If you still have an old policy, you can cancel it if you found the one that best suits your needs.
When Do I Need To Buy Car Insurance?
Before purchasing or leasing a vehicle, you must have get car insurance. If you are a newly licensed driver not covered under someone else’s insurance policy, you are required to get car insurance. Whether you have had car insurance for years, just got married, or moved, reviewing your coverage is a good idea every year or whenever a significant life event occurs. By switching insurers, you can save money.
Most insurance companies recommend purchasing a policy before you get behind the wheel as soon as possible. Obtaining coverage before you drive off the lot is still possible, even if you are making an unexpected or sudden car purchase. Purchasing car insurance online with some insurance companies within minutes is also possible. When registering a new car, some states require that drivers provide proof of insurance.
Where Can I Buy Car Insurance?
To get car insurance, you have three options:
- Purchase it online.
- Contact an insurance company representative (sometimes called a captive agent).
- Work with an independent insurance broker.
The best company, coverage, and rate can be determined using an insurance comparison calculator.
Documents Needed to Get Car Insurance
If you want to make the car insurance buying process run as smoothly as possible, you must have the following details on hand:
- The number on the driver’s license.
- All drivers on the policy must provide their social security numbers.
- VIN stands for a vehicle identification number.
- A description of the car’s make, model, year, and current mileage.
- A GPS anti-theft tracker or anti-lock brakes are examples of vehicle safety and security features.
- Whether you park your car in a garage or on the street.
- Please provide your home address and ZIP code.
- The number of miles you drive every year, estimated.
- Levels of coverage and deductibles desired.
- It doesn’t matter whether the car is owned outright, financed, or leased.
- If you plan to insure any other family members.
Do I Get Car Insurance If I Don’t Own the Car?
For its protection, you should buy car insurance even if you don’t own the car. Non-owner or non-driver insurance is designed for people who don’t own a car but borrow someone else’s regularly, travel frequently and rent a car, or utilize car-sharing services frequently. In some states, non-owner insurance may also be necessary for people who must file an SR-22 form to reinstate their driving privileges or prove they are insured.
In this type of insurance, the driver is responsible for any bodily harm and property damage caused to other people while driving. Depending on the company and policy, it may also include personal injury protection (PIP), medical payment coverage, and uninsured/underinsured motorist coverage. Collision coverage, comprehensive coverage, and theft protection are generally not included in non-owner car insurance.
What is Rental Insurance Policy?
A car rental insurance policy is used by people who don’t have car insurance, whose auto insurance doesn’t cover rentals, or whose auto insurance has a high deductible. A rental company sells this type of insurance, which is valid until the rental contract. If an accident damages property and injures others, these are typically covered by rental car insurance. In such a scenario, your liability coverage pays for the damages and injuries. You may be required to purchase this type of coverage if you do not have car insurance.
The rental insurance policy also keeps you protected from financial responsibility if your rental vehicle is damaged or stolen. Personal effects coverage protects you if your belongings are stolen from a rental car. You can cover your personal effects under a homeowners or renter’s insurance policy. If you or your passengers are injured while driving, your personal accident insurance will cover the medical bills.
How Much Car Insurance Do I Need To Buy?
A minimum amount of liability insurance is required in every state except New Hampshire and Virginia, and many states require additional coverage. However, a bare-bones policy may not cover all of your expenses in the event of an accident, loss, or injury.
If you are found responsible for an accident, your liability insurance will cover bodily injury or property damage. It is important to remember that the protections only apply to third parties. Your losses will not be covered by liability insurance. In some states, drivers must carry uninsured/underinsured motorists’ insurance (UM/UIM). You’ll be protected if you’re involved in a crash with a motorist who lacks insurance or does not have enough to cover your losses if you have this coverage. Some states also require personal injury protection, or PIP, which covers an accident causing personal injury or property damage.
Additionally, states define minimum liability limits for bodily injury and property damage, usually expressed as three numbers (25/50/25 for bodily injury and 25/50/25 for property damage). For every injured person in a car accident, the first number represents the maximum dollar amount of coverage. Secondly, it indicates the total amount of coverage for all injured individuals. Property damage is covered up to a specific limit as the third category. Each state has its minimum liability limit. For more information about your insurance requirements, contact your state’s Department of motor vehicles.
Should I Get More Insurance Than Minimum Required?
It may be necessary to carry more than the state-mandated minimums depending on where you live, how often you drive, and what vehicle you own. Adding additional insurance coverage to your auto policy may be a good idea, such as:
- Your collision insurance covers damage to your car in the event of a collision with another vehicle or hitting a tree.
- In addition to collision insurance, comprehensive coverage includes non-collision events like tornadoes, floods, hail, and wild animals.
- You will receive gap insurance if you total or severely damage your car and owe a lender the difference between what the car is worth and what you owe.
- Regardless of who was at fault, drivers and passengers with MedPay coverage are covered for healthcare costs associated with a covered incident.
Top Tips for Car Insurance Buyers
Here are some helpful tips when buying car insurance, whether you are a newbie or an experienced driver.
Look for the best-suited options to cut cost
Savings on car insurance can be achieved in several ways, such as:
- Get a better deal on your insurance by bundling: It refers to the discount you receive when buying many policies from the same insurance company. There is usually no better way to save money than to get a discount like this. Home and auto insurance can be bundled, for instance.
- Make sure you ask for discounts: Many insurers offer discounts for multiple cars, safety features, anti-theft devices, good driving, being a good student, occupational memberships, and good grades.
- Make the deductible higher: Generally, the higher the deductible on your comprehensive and collision insurance, the lower the premium. When you file a claim, the company may pay less. You can, for instance, raise your deductible from $500 to $1,000 (or even higher). When filing an insurance claim, you’ll be responsible for paying the out-of-pocket deductible if you choose a high deductible.
- Reduce the amount of optional coverage on older vehicles: Sometimes, purchasing certain optional coverages for an older car is not financially feasible. This is a guide to deciding when to drop collision and comprehensive coverage.
Don’t Limit Your Coverage Options
Regularly reviewing your auto insurance coverage is an excellent way to ensure it meets your needs. You may not be able to get the same amount of coverage or be offered a competitive price with the policy you purchased ten years ago.
“Everyone has different needs when it comes to auto insurance. In every phase of life, whether you’re a young driver, commuting to work, riding a carpool to soccer practice, or approaching your golden years, you should consult with your agent to make sure you have the coverage you need and nothing you don’t,” said Jon Bloom, vice president of product management at Erie Insurance.
Consider More Than Just the Price
Undoubtedly, you want to find the best car insurance deal possible. In addition to cost, there are other factors to consider. If you have to claim your car insurance, an insurance company with a good reputation for customer service is the one you want. Car insurance companies that provide good service at a competitive price are the best.
So, how to get car insurance as per your requirements? Compare prices from different companies and ensure to keep your needs in place. It will help in getting the best coverage for your vehicle. A majority of insurance companies offer various discounts, such as a discount for bundling with renters insurance or buying a new car. Researching each site can give you an idea of what discounts are available, but these discounts might not appear in your initial online quote.